It has been about a month since the last earnings report for PerkinElmer . Shares have added about 11.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PerkinElmer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PerkinElmer Q1 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported first-quarter 2020 adjusted earnings per share of 67 cents, which beat the Zacks Consensus Estimate of 47 cents per share by 42.6%. However, the bottom line declined 2.9% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $652.4 million, up 0.6% from the year-ago quarter but fell 1% organically. Adjusted revenues in the reported quarter came in at $652.6 million, 0.6% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.8%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues totaled $398.4 million, reflecting an improvement of 2.5% from the year-ago quarter. Organically, the segment saw a decline of 1% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported first-quarter 2020 adjusted operating income of $54.4 million, up 0.2% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $254 million, down 2.3% on a year-over-year basis. Organically, the segment deteriorated 1% in the first quarter. Per management, strength in applied genomics business was noticeably offset by modest decline across reproductive health and immunodiagnostics business lines.
Adjusted operating income in the segment totaled $90.6 million, up 5.6% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed first quarter, with mid-single digit organic revenue growth in the United States. While Europe saw double-digit growth, Asia Pacific (APAC) witnessed a double-digit decline on account of the COVID-19 pandemic in China, which was down over 30%.
Margin Analysis
Adjusted gross profit in the quarter came in at $325.4 million, up 0.7% year over year. Adjusted gross margin, as a percentage of revenues was 49.9%, up 10 bps year over year.
Adjusted operating income was $99.6 million, down 5.3% year over year. Adjusted operating margin, as a percentage of revenues was 15.3%, down 90 bps.
Financial Update
The company exited the first quarter with cash and cash equivalents came in at $195.1 million, increasing 1.7% from the year-end 2019.
During the reported quarter, net cash provided by operating activities came in at $60.1 million, compared with net cash used in operating activities of $5.3 million in the year-ago period.
2020 Guidance
Due to the uncertainty regarding the magnitude and duration of the COVID-19 pandemic, and the scope of a potential customer activity rebound, PerkinElmer has withdrawn its previously issued (Jan 27, 2020) full-year 2020 outlook.
Nonetheless, the company anticipates adjusted earnings per share of at least 65 cents in second-quarter 2020. Revenues are anticipated between $610 million and $720 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 5.84% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PerkinElmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is PerkinElmer (PKI) Up 11.4% Since Last Earnings Report?
It has been about a month since the last earnings report for PerkinElmer . Shares have added about 11.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PerkinElmer due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
PerkinElmer Q1 Earnings and Revenues Surpass Estimates
PerkinElmer, Inc. reported first-quarter 2020 adjusted earnings per share of 67 cents, which beat the Zacks Consensus Estimate of 47 cents per share by 42.6%. However, the bottom line declined 2.9% from the year-ago quarter.
Based in Waltham, MA, this leading MedTech company reported revenues of $652.4 million, up 0.6% from the year-ago quarter but fell 1% organically. Adjusted revenues in the reported quarter came in at $652.6 million, 0.6% year over year. The top line also surpassed the Zacks Consensus Estimate by 1.8%.
Segment Details
Discover & Analytics Solutions
At this segment, revenues totaled $398.4 million, reflecting an improvement of 2.5% from the year-ago quarter. Organically, the segment saw a decline of 1% in the quarter under review. Per management, continued strength in life sciences was more than offset by weak performance in food and applied markets.
Coming to profits at the DAS segment, the company reported first-quarter 2020 adjusted operating income of $54.4 million, up 0.2% from the year-ago quarter.
Diagnostics segment
Revenues at this segment amounted to $254 million, down 2.3% on a year-over-year basis. Organically, the segment deteriorated 1% in the first quarter. Per management, strength in applied genomics business was noticeably offset by modest decline across reproductive health and immunodiagnostics business lines.
Adjusted operating income in the segment totaled $90.6 million, up 5.6% from the year-ago quarter.
Geographical Details
Per management, the major geographies witnessed a mixed first quarter, with mid-single digit organic revenue growth in the United States. While Europe saw double-digit growth, Asia Pacific (APAC) witnessed a double-digit decline on account of the COVID-19 pandemic in China, which was down over 30%.
Margin Analysis
Adjusted gross profit in the quarter came in at $325.4 million, up 0.7% year over year. Adjusted gross margin, as a percentage of revenues was 49.9%, up 10 bps year over year.
Adjusted operating income was $99.6 million, down 5.3% year over year. Adjusted operating margin, as a percentage of revenues was 15.3%, down 90 bps.
Financial Update
The company exited the first quarter with cash and cash equivalents came in at $195.1 million, increasing 1.7% from the year-end 2019.
During the reported quarter, net cash provided by operating activities came in at $60.1 million, compared with net cash used in operating activities of $5.3 million in the year-ago period.
2020 Guidance
Due to the uncertainty regarding the magnitude and duration of the COVID-19 pandemic, and the scope of a potential customer activity rebound, PerkinElmer has withdrawn its previously issued (Jan 27, 2020) full-year 2020 outlook.
Nonetheless, the company anticipates adjusted earnings per share of at least 65 cents in second-quarter 2020. Revenues are anticipated between $610 million and $720 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 5.84% due to these changes.
VGM Scores
At this time, PerkinElmer has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PerkinElmer has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.